Tuesday, September 11, 2007
The Vulnerability of the Own Account Self-Employed
Many self-employed women are more financially vulnerable than their male peers. This is because women are far more likely to be in the "own account" category of self-employment, meaning they are not employers. As such...
However, since the restructuring of the 90's, many companies now "contract out", which puts the cost of benefits, equipment, training and insurance into the hands of the worker. If that worker cannot claim a high rate to compensate for the immediate (e.g. equipment), potential (e.g. ill health) and long-term (e.g. retirement) costs she is absorbing, the employment contract is not to her benefit.
Jan Wong documented an example of vulnerable "contract" employees in her newspaper series on maids in 2006. Many maids are not on salary but are own account self-employed workers contracted by cleaning agencies. They are not paid for travel time and barely make minimum wage after the agency takes its cut. They do not have benefits nor can they afford insurance or time off if they become ill or injured. Read more in the "Maid for a Month" series on the Globe and Mail site.
- They earn significantly less than self-employed men.
The majority do not have private insurance plans.
They cannot access Employment Insurance (including maternity leave), and are much less likely to be able to access training programs.
They face earnings interruptions when there is a family or personal illness, or following childbirth/adoption.
They often use personal finances to invest in their businesses.
Many do not incorporate their businesses, so if difficulties arise, they may be forced to claim personal bankruptcy.
However, since the restructuring of the 90's, many companies now "contract out", which puts the cost of benefits, equipment, training and insurance into the hands of the worker. If that worker cannot claim a high rate to compensate for the immediate (e.g. equipment), potential (e.g. ill health) and long-term (e.g. retirement) costs she is absorbing, the employment contract is not to her benefit.
Jan Wong documented an example of vulnerable "contract" employees in her newspaper series on maids in 2006. Many maids are not on salary but are own account self-employed workers contracted by cleaning agencies. They are not paid for travel time and barely make minimum wage after the agency takes its cut. They do not have benefits nor can they afford insurance or time off if they become ill or injured. Read more in the "Maid for a Month" series on the Globe and Mail site.
Labels: Issues_and_Trends
